USD/JPY near 6-yr high before Powell speech

"I have two basic rules about winning in trading as well as in life: 1. If you don't bet, you can't win. 2. If you lose all your chips, you can't bet." - Larry Hite.

 

 

HEADLINES

 

 

• Yen kicks off another week under pressure, with central bank policy in focus
• China keeps lending benchmark unchanged but Q2 easing expected
• Gold little changed as focus remains on Ukraine crisis
• Oil climbs on pressure from Ukraine conflict, tight market
• Shares in sober mood, yen near six-year low
• EUR/USD to advance nicely towards 1.13 by year-end – Nordea
• EURUSD Short Term: Upside favored

 

 

FOREX

 

 

Yen kicks off another week under pressure, with central bank policy in focus

 

 

The Japanese yen continued its slide on Monday morning, while the aussie and kiwi remained bid, with traders eying a string of public remarks by global central bank policymakers this week, including Fed chair Jay Powell later Monday.

The dollar climbed slightly on the yen to as much as 119.3 yen challenging the six-year peak of 119.39 touched on Friday. The dollar finished last week 1.6% higher versus the Japanese currency.

 

 

China keeps lending benchmark unchanged but Q2 easing expected

 

 

China kept its benchmark interest rate for corporate and household lending unchanged on Monday, as expected, although analysts say the case for monetary stimulus is building amid mounting external risks to an already slowing economy.

The one-year loan prime rate (LPR) was held at 3.70% while the five-year LPR remained at 4.60%.

 

 

COMMODITIES

 

 

Gold little changed as focus remains on Ukraine crisis

 

 

Gold was unchanged on Monday, hovering near a two-week low it hit last week, as investors eyed developments in the Russia-Ukraine conflict while looking to price in the U.S. Federal Reserve's more aggressive measures to combat inflation.

 

 

Oil climbs on pressure from Ukraine conflict, tight market

 

 

Oil prices jumped $2 on Monday as Ukrainian forces dug in against heavy Russian attacks, while major oil producers reported they are struggling to produce their allotted quotas under a supply agreement.

Brent crude futures climbed $1.96, or 1.8%, to $109.89 a barrel at 0039 GMT, adding to a 1.2% rise last Friday.

 

 

STOCKS

 

 

Shares in sober mood, yen near six-year low

 

 

Asian share markets started the week in a sober mood on Monday as fighting in Ukraine raged on with no sign of stopping, leaving investors clutching at hopes for an eventual peace deal.

Turkey's foreign minister did say on Sunday that Russia and Ukraine were nearing agreement on "critical" issues and he was hopeful for a ceasefire.

Investors were also anxiously waiting to see if Russia would meet more interest repayments this week. It must pay $615 million in coupons this month while on April 4, a $2 billion bond comes due.

 

 

ANALYSIS

 

 

EUR/USD to advance nicely towards 1.13 by year-end – Nordea

 

 

“We expect the USD to remain well supported in Q2, but expect the EUR/USD to revisit 1.08 or lower levels only if we get another spell of severe risk aversion. Hence, we see EUR/USD in a range of 1.08-1.12 the next three months.”

“During the second half of the year, we expect to see the US economy cooling off and the dollar to trade with light headwind. We see EUR/USD heading towards 1.13 towards the end of the year.”

 

 

CHART

 

 

EURUSD Short Term: Upside favored

 

 

Technical View: Long position above 1.099. Target 1.113. Conversely, break below 1.099, to open 1.094.

Comments: The pair remains under pressure. Further weakness favored.

Source: Trading Central

 

 

CALENDAR

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar

Notes:

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/eur-usd-to-advance-nicely-towards-113-by-year-end-nordea-202203180819
https://www.reuters.com/world/china/china-keeps-benchmark-lending-rates-unchanged-expected-2022-03-21/
https://www.reuters.com/business/yen-kicks-off-another-week-under-pressure-with-central-bank-policy-focus-2022-03-21/
https://www.reuters.com/business/energy/oil-climbs-pressure-ukraine-conflict-tight-market-2022-03-21/
https://www.reuters.com/business/global-markets-wrapup-1-pix-2022-03-21/